AIG to Deploy $700m in Regional PE Fund

AIG Capital, the private equity arm of the US insurance group, has closed a $692m fund targeted at four LatAm markets. The Brazil Special Situations Fund II (BSSF II) will look to invest growth capital through mostly minority stakes in the region, Ana Vigon, head of LatAm private equity at the firm, tells LatinFinance. The fund has a mandate to allocate 70% in Brazil, where the firm has 14 professionals including four senior executives. The rest will be placed in Colombia, Peru and Mexico. The fund targets returns of 25% but expects to achieve more. “Our BSSFI fund had an [annual] return of 34%,” says Vigo. The company has already clinched two investments, including one in Colombia – a $10m stake in Falcon Farms, a flower grower. “We plan to set up an office in Colombia by the end of the year,” adds Vigon, pointing to the growing opportunities she sees in that market. The BSSFII is a follow-up to the $215m BSSFI, which was marked by a successful early stake in Brazilian airline Gol. AIG also has two professionals operating from its Mexico office.